Simple Income Tax Questions - Laptop & IP Travel Expenses

[fmx_rider]

Hi,

For the tax experts on here, I have a couple of questions.

a) Laptops to my knowledge are depreciable over 3 years. Is this 33% per year or different (sliding scale) rates per year?
(I am aware that you then have to apply a % that was work related to this figure).

b) My wife and I are in a 99/1% split for our IP (to maximise tax benefit to my income). We both have travel expenses relating to property manager interviewing/signing of PM contract and quick tidy up of our IP. Should the travel expenses be claimed 99% under my name 1% on my wife's name in line with our IP split, or should they be claimed 'at cost' split (ie. 100% of my expenses to me, 100% of my wife's expenses to her, 50% each for joint expenses)?

Any advice greatly appreciated.

 

[AVD]

Laptops have an effective life of three years and to work out the % depreciable you divide 200 by three. So they are 66.67% depreciable apportionate to how many days of the financial year it applies to depending on when you bought it and then you apportion the work related/investment related % to that.

The travel expenses should all be claimed in the rental schedule and therefor will automatically be apportioned 99/1. (Could I say 'apportion' anymore!!)

Regards,

Alysha

 

[redsquash]

Laptops have an effective life of three years and to work out the % depreciable you divide 200 by three. So they are 66.67% depreciable apportionate to how many days of the financial year it applies to depending on when you bought it and then you apportion the work related/investment related % to that.

The travel expenses should all be claimed in the rental schedule and therefor will automatically be apportioned 99/1. (Could I say 'apportion' anymore!!)

Regards,

Alysha

Up until some relative recent date your travel expenses expalation was true. I have a feeling the law was changed such that in the above example ,expenses need not be necesarrily apportioned on the split of ownership.
Is that true?
Also if true , is that law still appiccable, or has that loop hole or effect been changed
If I am in error can someone elude to what I might be referring to please

 

[Rob G.]

Up until some relative recent date your travel expenses expalation was true. I have a feeling the law was changed such that in the above example ,expenses need not be necesarrily apportioned on the split of ownership.
Is that true?
Also if true , is that law still appiccable, or has that loop hole or effect been changed
If I am in error can someone elude to what I might be referring to please

I think you are referring to salary sacrificing 100% and treating all as "otherwise deductible" on jointly owned properties !!

Cheers,

Rob

 

[marg4000]

A lot will depend on how much you are planning to claim.

For travel you will have to establish that the visit was solely for IP purposes, otherwise minimal deductions apply. If interstate, it may be ambitious to claim that you both had to go, particularly for the purpose you state.
Marg

 

[redsquash]

I think you are referring to salary sacrificing 100% and treating all as "otherwise deductible" on jointly owned properties !!

Cheers,

Rob

rob,I am unclear on what you mean . Can you explain by way of example. Thanks

 

[Rob G.]

rob,I am unclear on what you mean . Can you explain by way of example. Thanks

You *used* to be able to have, say, high income owner 1%, low income spouse 99% ownership.

That way 99% of income streams to low tax rate spouse.

But, high tax rate spouse salary sacrifices the joint rental expenses, and uses the otherwise deductible rule to avoid FBT.

That way deductions effectively in high tax rate spouse's name (plus any GST input credits utilised by employer).

Those days have gone now ... the otherwise deductible rule does not cover ownership share by your associate.

Beware of old threads.

Cheers,

Rob

 

[bennido]

If interstate, it may be ambitious to claim that you both had to go, particularly for the purpose you state.

I claim for both as we are 2 owners with 2 cars and we drive there separately.